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Wednesday, October 10, 2001
NYC agencies ordered to slash their budgets
Giuliani estimates cost to city budget of the Sept. 11 attack will be at least $1 billion
By Larry McShane
Associated Press
   NEW YORK - Mayor Rudolph Giuliani ordered a 15 percent cut in spending by most city departments Tuesday, predicting the World Trade Center attack will cost $1 billion in revenue this fiscal year and 100,000 jobs.
   Separately, Gov. George Pataki said it will take $54 billion in federal money for New York to recover. He said New York is requesting $34 billion to rebuild lower Manhattan and $20 billion to reinvigorate New York's economy.
   Giuliani spared only the police and fire departments and school system from double-digit budget cuts. Those departments face a 2.5 percent cutback. A citywide hiring freeze went into effect after the Sept. 11 attack, he said.
   Despite the dire estimates, an upbeat Giuliani said the city is well-positioned to absorb the fiscal woes caused by the attack that turned the lower Manhattan financial district into a graveyard for some 5,000 victims.
   'No question'
   "There's no question our budget problems are real and substantial, but they are significantly less than the problems we've already encountered and overcome," said Giuliani, referring to the fiscal crisis of the 1970s.
   Congress has already approved $20 billion to help New York rebuild and recover, and the city has a $550 million reserve.
   The mayor, who leaves office at the end of December, offered some advice to his eventual successor: Do not raise taxes.
   Advice to the next mayor
   "It would be a dumb, stupid, idiotic and moronic thing to do," he said.
   Giuliani warned that the $1 billion estimate was a "soft" number of the loss of city revenue - including lost taxes from hotels, restaurants and retail sales.
   It is unclear, Giuliani said, if the job losses will be permanent.
   The number of people reported missing dropped Monday to 4,815. There have been 417 confirmed deaths, including 366 victims who have been identified.

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